§ Mr. FoulkesTo ask the Secretary of State for the Environment what action he proposes following the High Court decision by Mr. Justice Ognall on the appeal by the Inland Revenue on the separate valuation for council tax purposes of annexes set aside in houses for elderly relatives; and if he will make a statement. [30022]
§ Mr. CurryWe will study the full text of the judgment as soon as it is available, in order to decide what action may be necessary. Our current understanding is that it affects only a small number of cases where there is an unresolved dispute as to whether a property contains one dwelling or more than one dwelling for council tax purposes.
The ruling, as we understand it pending full examination of the transcript, does not mean that thousands of families caring for elderly relatives are likely to face additional back dated council tax bills. The High Court has not said that either granny annexs generally or the particular granny annexs which were the subject of these cases are liable to separate council tax. They have merely said that the valuation tribunals concerned took irrelevant factors into account in taking their decisions. They have remitted the cases to the tribunals for reconsideration.
The Government do not believe, and the judgment does not appear to suggest, that families should be financially penalised for sharing their home with an elderly relative or relatives.